Compliance Corner

Missouri employers: Important update on paid sick leave law

Effective May 1, 2025, Missouri’s new Earned Paid Sick Time law will take effect. Here are the key details employers need to know:

  1. Coverage 
    • Applies to all private employers in Missouri 
    • Excludes federal and state government entities 
    • Some employee categories are exempt (e.g., certain nonprofit workers and employees in retail/service businesses with annual gross sales below $500,000) 
  2. Accrual and usage 
    • Employees earn one hour of paid sick leave for every 30 hours worked 
    • Accrual begins May 1, 2025, or upon hire (whichever is later) 
    • There is no waiting period, so employees can use sick time as it accrues 
  3. Annual limits 
    • Employers with 15+ employees: 56 hours of use per year 
    • Employers with fewer than 15 employees: 40 hours of use per year 
  4. Carryover and front-loading 
    • Up to 80 hours of unused sick leave can carry over to the next year 
    • Employers may front-load sick leave at the beginning of the year 
    • If front-loading, unused time must be paid out at year-end 
  5. Permitted uses 
    • An employee’s or their family member’s physical/mental health care 
    • Absences due to domestic violence, sexual assault or stalking 
    • Closures of workplace or schools due to public health emergencies 
  6. Employer requirements 
    • Display a workplace poster by April 15, 2025 
    • Provide individual notice to employees within 14 days of hire 
    • Maintain records for at least three years 
  7. Next steps 
    • Review and update your existing PTO policies 
    • Prepare for implementation by May 1, 2025 
    • Watch for potential legal challenges or legislative changes